Understanding fallback credit card transactions
Fallback processing occurs when a PIN pad is unable to read an EMV chip card during a transaction. When this happens, the device prompts the customer to swipe the card using the magstripe instead. While this allows the transaction to continue, it also increases the risk of fraud and can result in fees.
Common causes of fallback processing
A fallback may be triggered for several reasons:
- A PIN pad failing to read an EMV chip card
- A customer inserting their card incorrectly (e.g., upside down or backwards)
- A customer who doesn’t know or can’t remember their PIN
To reduce the risk of fraud, cashiers should closely watch each transaction to be sure the customer is not intentionally trying to get the PIN pad to fail. In addition, it is not recommended to intentionally cause the PIN pad to go into fallback processing. Learn more about common red flags for fraud.
Merchant limits & compliance
Due to fraud concerns, it is important to be aware that there are limits on how many fallback transactions a merchant can perform.
The card brands will charge additional fees if chronic fallback persists with a particular merchant.
Monitor fallback transactions
The Transaction Status report within Merchant Services Online Access (MSOA) allows you to drill down to the specific network devices that are experiencing fallback transactions. With this functionality, you can see the number of fallback transactions by network and specific dispensers or registers, giving you valuable information to determine if your devices are configured correctly for EMV.
Need help or have questions?
If you have questions about fallback processing or EMV chip transactions, contact CHS Payment Solutions by phone at 800-852-5301 or email at pssupport@chsinc.com.
